Font size
S
M
L
XL
WorksheetsFinancial Lit Prep
Total questions: 92
Worksheet time: 46mins
Name
Class
Date
1.
Which formula correctly calculates the net price of college for a student?
a)
Sticker Price - Total Grants and Scholarships
b)
Sticker Price + Total Scholarships
c)
Cost of Attendance - Student Loans
d)
Tuition and Fees + Room and Board
2.
The 'sticker price' of a college is most closely synonymous with which of the following terms?
a)
The official, published Cost of Attendance (COA) before any financial aid is deducted.
b)
The final amount a student pays after all aid is applied.
c)
The estimated cost of books and transportation.
d)
The amount covered by a federal student loan.
3.
Discretionary income is best defined as the money remaining after a person has paid for:
a)
All necessary expenses, such as housing, food, and utilities.
b)
All taxes and government fees.
c)
All expenses, including non-essential items like entertainment.
d)
All mandatory deductions, including taxes and 401(k) contributions.
4.
Which of the following expenses would typically be paid for using discretionary income?
a)
A subscription to a streaming service
b)
Monthly rent payment
c)
The minimum payment on a student loan
d)
Income taxes withheld from a paycheck
5.
Gross pay refers to the amount of money an employee earns:
a)
Before any deductions, such as taxes or insurance premiums, are taken out.
b)
After all taxes and deductions have been subtracted.
c)
Only from their base hourly wage, not including overtime.
d)
That is specifically designated for retirement savings.
6.
If an employee works 40 hours at a rate of $15 per hour, their gross pay for the week would be:
a)
The entire amount of $600.00
b)
The final amount deposited into their bank account.
c)
Less than $600 after payroll taxes.
d)
More than $600 due to employer matching.
7.
Net pay is often referred to as an employee's 'take-home pay' because it represents the money:
a)
Remaining after all mandatory and voluntary deductions are subtracted from gross pay.
b)
Earned before any mandatory deductions.
c)
Used to calculate social security contributions.
d)
Deposited into the company's 401(k) plan.
8.
Which deduction is always subtracted from gross pay to arrive at a different number that is closer to the net pay?
a)
Federal and state income taxes
b)
Monthly credit card payments
c)
Groceries and household supplies
d)
Rent or mortgage payments
9.
A 401(k) plan is a type of retirement savings account sponsored by an employer that allows employees to:
a)
Contribute pre-tax or post-tax dollars, depending on the plan structure.
b)
Withdraw funds tax-free at any age.
c)
Invest only in government bonds and Certificates of Deposit.
d)
Borrow money from the government for a down payment on a house.
10.
The primary financial advantage of an employer's matching contribution to a 401(k) plan is that it is essentially:
a)
Free money that immediately increases your savings.
b)
A guaranteed tax deduction.
c)
A reduction in your monthly student loan payment.
d)
A short-term loan you can repay at any time.
11.
A primary reason for keeping money in a savings account is to:
a)
Keep funds separate from the money used for day-to-day spending.
b)
Earn higher returns than the stock market.
c)
Avoid paying any taxes on the interest earned.
d)
Use an unlimited number of checks for transactions.
12.
In the United States, funds held in a standard savings account at an insured bank are protected by the FDIC up to what amount per depositor?
a)
$250,000
b)
$100,000
c)
$1,000,000
d)
$500,000
13.
A key convenience of online banking compared to traditional brick-and-mortar banking is:
a)
The ability to manage accounts and perform transactions 24/7 from anywhere with internet access.
b)
Higher interest rates are legally mandated for all online banks.
c)
Funds are not subject to the same federal regulations.
d)
All online banks have no fees whatsoever.
14.
Which action is most crucial for maintaining security when using online banking?
a)
Using a strong, unique password and enabling two-factor authentication.
b)
Only using public Wi-Fi networks for transactions.
c)
Writing down your password in a notebook.
d)
Checking your account balance only once per year.
15.
An emergency fund is a dedicated account intended to cover:
a)
Unexpected financial hardships, such as job loss or major medical expenses.
b)
All costs of a planned major purchase, like a new car.
c)
Routine monthly expenses like rent and utility bills.
d)
Investments in high-risk stocks for potential large gains.
16.
Financial experts generally recommend that an emergency fund should contain enough money to cover how many months of living expenses?
a)
3 to 6 months
b)
1 to 2 weeks
c)
1 month
d)
1 year or more
17.
The most common reason a consumer would use a mortgage to borrow money is for:
a)
Financing the purchase of real estate, like a home.
b)
Purchasing new furniture.
c)
Consolidating high-interest credit card debt.
d)
Paying for a one-time vacation.
18.
Which of the following is an example of an unsecured loan, meaning it does not require collateral?
a)
A personal loan for debt consolidation
b)
A home equity line of credit (HELOC)
c)
A car loan
d)
A mortgage
19.
Compound interest is defined as interest earned on:
a)
The initial principal plus all previously earned interest.
b)
Only the initial principal amount.
c)
Only the amount contributed in the current year.
d)
The money deposited by the bank into your account.
20.
What is the main long-term effect of compound interest on savings and investments?
a)
It causes the investment to grow at an accelerating rate.
b)
It limits the total amount of interest that can be earned.
c)
It slows down the growth of the investment over time.
d)
It reduces the tax liability on the interest earned.
21.
What is the primary difference between a line of credit and a traditional installment loan?
a)
A line of credit offers a maximum borrowing limit that can be used and repaid repeatedly, while an installment loan is a fixed amount repaid over a set term.
b)
An installment loan is only used for business, while a line of credit is for personal use.
c)
A line of credit does not require collateral, but an installment loan always does.
d)
An installment loan always has a lower interest rate than a line of credit.
22.
Which of the following describes a key characteristic of a Home Equity Line of Credit (HELOC)?
a)
It allows the borrower to draw funds, up to a limit, during a set draw period, using their home as collateral.
b)
It is an unsecured loan with a fixed repayment schedule.
c)
The borrower receives the full amount upfront and must begin paying it back immediately.
d)
The interest rate is always fixed for the entire life of the loan.
23.
A Certificate of Deposit (CD) is a low-risk savings tool because it offers:
a)
A fixed interest rate for a specific term, and is typically insured by the FDIC.
b)
The ability to withdraw funds without penalty at any time.
c)
The potential for high returns similar to the stock market.
d)
Variable interest rates that adjust monthly based on the market.
24.
What is the consequence of withdrawing money from a Certificate of Deposit (CD) before its maturity date?
a)
You are typically subject to an early withdrawal penalty, often a forfeiture of some interest.
b)
The bank must pay you an extra bonus for early withdrawal.
c)
You lose the entire principal amount invested.
d)
The interest rate will automatically reset to a higher rate for the remaining term.
25.
An insurance premium is best described as the:
a)
Regular payment required to keep an insurance policy in effect.
b)
Fixed amount a policyholder pays for covered services before the deductible is met.
c)
Total cash value of an asset being insured.
d)
Amount the policyholder must pay out-of-pocket before the insurer begins to pay.
26.
Which factor is least likely to influence the cost of an individual's auto insurance premium?
a)
The average daily temperature of the policyholder's city.
b)
The driver's age and driving history.
c)
The type of vehicle being insured (e.g., its safety features and cost to repair).
d)
The amount of the deductible chosen by the policyholder.
27.
A co-pay (or co-payment) is a fixed fee paid by the insured person for:
a)
Specific covered services, such as a doctor's visit or prescription drug, at the time of service.
b)
The entire cost of a hospital stay.
c)
A new insurance policy when switching providers.
d)
The total amount of money paid to the insurance company each month.
28.
What is the purpose of requiring a co-pay for routine medical services?
a)
To discourage policyholders from seeking unnecessary medical care.
b)
To ensure the insured person's medical records remain private.
c)
To automatically renew the insurance policy for another year.
d)
To increase the total amount of money the insurance company pays for each claim.
29.
A deductible is the amount the insured person must pay out-of-pocket for covered losses:
a)
Before the insurance company starts paying for claims.
b)
Before the insurance coverage is cancelled.
c)
As a monthly fee to keep the policy active.
d)
For every single doctor's visit or prescription drug.
30.
How does a higher deductible typically affect the cost of an insurance premium?
a)
A higher deductible leads to a lower premium.
b)
A higher deductible leads to a higher premium.
c)
There is no relationship between the deductible and the premium.
d)
The deductible is only a factor in property insurance, not health insurance.
31.
Which of the following is the primary way insurance companies make money?
a)
By keeping the total amount collected in premiums greater than the total amount paid out in claims and operating expenses.
b)
By charging fees to customers who submit a high number of claims.
c)
By liquidating customer assets that are used as collateral for the policy.
d)
By charging a high fee to customers who purchase a policy online.
32.
The second major source of revenue for an insurance company, besides collected premiums, is:
a)
Investing the large pools of collected premium money (float) until claims are paid.
b)
Receiving government subsidies to cover major disasters.
c)
Charging policyholders an interest rate on their deductible.
d)
Selling customer data to marketing companies.
33.
A high-deductible health insurance policy (HDHP) is typically best suited for an individual who:
a)
Is generally healthy and wants a lower monthly premium.
b)
Expects to have many doctor visits and need frequent prescription refills.
c)
Wants to eliminate all out-of-pocket costs for healthcare.
d)
Has very little savings and cannot afford a large out-of-pocket expense.
34.
A major advantage of enrolling in a High-Deductible Health Plan (HDHP) is that it often qualifies the policyholder to open and contribute to a:
a)
Health Savings Account (HSA).
b)
Health Maintenance Organization (HMO).
c)
Flexible Spending Account (FSA).
d)
401(k) Retirement Plan.
35.
Under the Affordable Care Act (ACA), the maximum age a young adult can generally stay on a parent's health insurance plan is:
a)
Age 26
b)
Age 21
c)
There is no maximum age if they are a full-time student.
d)
Age 30
36.
Which of the following conditions is not a requirement for a young adult to remain on a parent's health insurance until the maximum allowable age?
a)
The child must be a full-time student.
b)
The child must be under the age of 26.
c)
The parent's plan must be covered by the ACA (most employer and individual plans).
d)
The child must not have reached the maximum age limit.
37.
The primary purpose of life insurance is to:
a)
Replace the policyholder's income and cover financial obligations for dependents upon the policyholder's death.
b)
Provide a high-return investment for the policyholder's retirement.
c)
Offer a tax-deductible way to save money each year.
d)
Pay for the policyholder's long-term care expenses while they are alive.
38.
Which type of life insurance provides coverage for a specific period of time (e.g., 20 years) and is generally the most affordable?
a)
Term Life Insurance
b)
Whole Life Insurance
c)
Universal Life Insurance
d)
Variable Life Insurance
39.
Renters insurance primarily protects the renter against:
a)
Loss or damage to personal belongings and liability for injuries to visitors in the rental unit.
b)
The cost of monthly rent payments if they lose their job.
c)
Damage to the physical structure of the apartment building or house.
d)
The landlord raising the rent above a legal limit.
40.
Which component of renters insurance would cover legal expenses if a visitor slipped on a wet floor in the apartment and sued the renter?
a)
Medical Payments Coverage
b)
Personal Property Coverage
c)
Additional Living Expenses (ALE)
d)
Uninsured Tenant Coverage
41.
Homeowners insurance provides coverage for:
a)
The structure of the home, personal belongings, and liability protection.
b)
The entire amount of the mortgage loan regardless of the house's value.
c)
Only the contents inside the home, not the structure itself.
d)
Maintenance issues, such as a leaky faucet or a broken air conditioner.
42.
If a policyholder's house becomes uninhabitable due to a covered fire, which part of the homeowners insurance policy would pay for temporary housing and food?
a)
Additional Living Expenses (ALE)
b)
Dwelling Coverage
c)
Personal Liability
d)
Personal Property Coverage
43.
Flood insurance is typically:
a)
A separate policy, often backed by the federal government, covering damage from surface water and rising water.
b)
Automatically included in a standard homeowners or renters insurance policy.
c)
Purchased from the state government and covers only damage to personal belongings.
d)
Required for all homes built on waterfront property.
44.
Which scenario would NOT be covered by a standard flood insurance policy?
a)
Water damage caused by a sewer backup into the home's basement.
b)
Damage caused by a storm surge from a hurricane.
c)
Damage to a home's foundation from a sudden, localized flash flood.
d)
A river overflowing its banks and entering the home.
45.
The concept of diversification in investing is best summarized by the phrase:
a)
Don't put all your eggs in one basket.'
b)
Only investing in the companies you know and trust.
c)
Putting all your money into the one investment you believe will perform the best.
d)
Minimizing taxes by investing only in municipal bonds.
46.
By diversifying their investments across different asset classes, an investor primarily aims to:
a)
Reduce the overall volatility and risk of their portfolio.
b)
Increase the guaranteed rate of return.
c)
Ensure that they always earn money every year.
d)
Achieve the same returns as investing in a single, high-risk stock.
47.
The most significant financial advantage of saving money in retirement accounts like a 401(k) or IRA is that:
a)
The contributions and/or the earnings receive favorable tax treatment.
b)
The money can be withdrawn tax-free at any time for any purpose.
c)
Employers are legally required to match 100% of all employee contributions.
d)
The money is insured against losses by the FDIC.
48.
If an investor is saving money in a Traditional 401(k), when are they required to pay income tax on the money they contributed?
a)
At the time of withdrawal during retirement.
b)
Immediately upon contribution, before the money is invested.
c)
Annually, on the growth and earnings of the investment.
d)
Never, because retirement accounts are completely tax-exempt.
49.
The fundamental relationship between risks and rewards in investing is that:
a)
Investments with the potential for higher returns generally carry a higher degree of risk.
b)
To achieve a potentially higher return, an investor must be willing to accept lower risk.
c)
All investments carry the same level of risk and reward.
d)
Risk is only a factor in short-term investments, not long-term ones.
50.
Which investment would typically be considered the lowest risk and therefore have the lowest potential reward?
a)
A short-term U.S. Treasury Bill (Government Bond).
b)
A growth stock in a small, emerging technology company.
c)
A diversified portfolio of blue-chip stocks.
d)
A real estate investment trust (REIT).
51.
What is the primary difference between a stock and a bond?
a)
A stock represents ownership in a company, while a bond represents a loan to a company or government.
b)
Bonds are always high-risk investments, while stocks are always low-risk.
c)
Bonds offer potential growth, while stocks only offer fixed interest payments.
d)
Stocks are only issued by governments, while bonds are only issued by corporations.
52.
If a company goes bankrupt, the holders of which security are typically paid back first?
a)
Company Bonds (Debt Holders)
b)
Common Stock
c)
Preferred Stock
d)
Mutual Funds holding the company's assets
53.
A mutual fund is best described as a financial tool that:
a)
Pools money from many investors to purchase a diversified portfolio of stocks, bonds, and other assets.
b)
Guarantees a fixed rate of return over a five-year period.
c)
Allows an investor to buy stock in only one specific company.
d)
Puts money into a single savings account for maximum liquidity.
54.
The primary advantage of investing in a mutual fund instead of purchasing individual stocks is that the fund offers:
a)
Immediate diversification and professional management.
b)
A much lower expense ratio than buying direct stocks.
c)
The ability to withdraw funds without penalty at any time.
d)
A guaranteed return that is tied to inflation.
55.
Financial markets are best defined as:
a)
A set of institutions and procedures for creating and exchanging financial assets like stocks and bonds.
b)
Any bank or credit union that offers savings accounts.
c)
Only the physical buildings where traders meet to buy and sell currency.
d)
A government agency that regulates all commercial bank transactions.
56.
The primary function of financial markets is to:
a)
Facilitate the transfer of funds from investors and savers to businesses and governments that need capital.
b)
Store money securely for individuals and businesses.
c)
Create and manage individual retirement accounts (IRAs).
d)
Determine the national minimum wage.
57.
The stock market is best described as a system that allows people to buy and sell:
a)
Shares of ownership in publicly traded companies.
b)
Government-issued debt instruments.
c)
Precious metals and commodities.
d)
Foreign currencies at fixed exchange rates.
58.
How does the stock market help a corporation raise capital?
a)
It allows the company to sell initial shares (IPO) or additional shares (secondary offerings) to the public for cash.
b)
The company borrows money directly from the stock exchange.
c)
It provides a fixed-rate interest payment on the company's retained earnings.
d)
The government gives tax credits to any company that is publicly traded.
59.
A government bond is essentially:
a)
An IOU, or a loan made by an investor to the government, in exchange for regular interest payments.
b)
A share of ownership in a government-owned corporation.
c)
A high-risk stock investment that is guaranteed a minimum return by the government.
d)
A type of mutual fund that invests only in international stocks.
60.
Why are U.S. government bonds generally considered one of the safest investments available?
a)
Because the United States government can print money or raise taxes to ensure repayment.
b)
Because they offer the highest possible interest rate.
c)
Because they are protected against all market volatility by federal law.
d)
Because they are insured by the FDIC up to $250,000.
61.
What is the primary purpose of a credit score?
a)
To measure the likelihood that a person will repay borrowed money.
b)
To determine an individual's total income and net worth.
c)
To track a person's monthly savings contributions.
d)
To ensure that all individuals receive the same low interest rate on loans.
62.
A consumer's credit score is built using information primarily found in which official document?
a)
The consumer's credit report
b)
A W-2 tax form
c)
A bank account statement
d)
A certified personal background check
63.
Which is the most compelling reason why having a good credit score is desirable?
a)
It qualifies the person for lower interest rates and better loan terms on mortgages and auto loans.
b)
It guarantees that a person will never have to apply for a loan again.
c)
It ensures a person's investments will always be profitable.
d)
It allows the person to legally avoid paying taxes on credit card purchases.
64.
A prospective landlord may use a tenant's credit score for which purpose?
a)
To determine the likelihood that the tenant will pay rent consistently and on time.
b)
To calculate the tenant's exact rent payment.
c)
To track the tenant's daily electricity usage.
d)
To determine the required amount of renters insurance the tenant must purchase.
65.
The three major credit bureaus (Equifax, Experian, and TransUnion) are legally required to provide a consumer with a free copy of their credit report how often?
a)
Once per year.
b)
Once every 10 years.
c)
Only when applying for a major loan.
d)
Once every month.
66.
The most important reason to frequently check your credit report is to:
a)
Ensure the report contains no fraudulent accounts or inaccurate information.
b)
Find new loan offers that the bureaus have advertised.
c)
Obtain a free copy of your tax returns.
d)
Increase your credit score automatically.
67.
What is generally considered the most important factor that lenders use to determine if a loan will be approved and at what interest rate?
a)
The applicant's payment history on previous and current debts.
b)
The applicant's marital status.
c)
The applicant's current stock market portfolio value.
d)
The number of active credit cards the applicant holds.
68.
Besides credit score, another key factor in loan approval is the Debt-to-Income (DTI) ratio, which primarily tells the lender:
a)
How much of the applicant's current income is already obligated to cover existing debt payments.
b)
The total amount of money the applicant has saved.
c)
Whether the applicant is employed full-time or part-time.
d)
The maximum loan amount the applicant has previously been approved for.
69.
A consumer must apply for a loan because the lender needs to assess:
a)
The applicant's creditworthiness and ability to repay the specific loan.
b)
The color of the applicant's car.
c)
The applicant's investment decisions over the past five years.
d)
Whether the applicant intends to save or spend the loan money.
70.
When you submit a loan application, the lender often performs a hard inquiry on your credit report. This action typically results in:
a)
A temporary, minor decrease in your credit score.
b)
The immediate approval of the loan.
c)
A significant and permanent decrease in your credit score.
d)
An immediate and automatic increase in your credit score.
71.
A mortgage is a specialized loan used to finance the purchase of real estate, in which the purchased property serves as the:
a)
Security (collateral) for the loan.
b)
Down payment.
c)
Interest payments.
d)
Tax-deductible expense.
72.
What is the primary risk for a borrower who takes out an Adjustable-Rate Mortgage (ARM)?
a)
The interest rate on the loan may increase significantly after the initial fixed period, leading to higher monthly payments.
b)
The monthly payment amount will remain the same for the entire loan term.
c)
The borrower is penalized if they try to pay off the loan early.
d)
The bank will not lend them the full amount required to purchase the home.
73.
Predatory loans are characterized by loan terms that are primarily designed to:
a)
Trap the borrower in a cycle of debt by including excessive fees, high interest rates, and unfair terms.
b)
Offer the lowest possible interest rate to borrowers with excellent credit scores.
c)
Minimize the lender's risk while maximizing the borrower's opportunity for success.
d)
Provide collateral-free financing to small businesses.
74.
A key indication that a loan may be predatory is the inclusion of which common feature?
a)
An interest rate that is significantly higher than average market rates for that type of loan.
b)
A payment schedule that allows the borrower to choose their payment date.
c)
A clear, itemized breakdown of all fees and charges.
d)
A fixed interest rate that does not change over time.
75.
Which of the following is a classic example of a predatory loan product?
a)
A Payday Loan with an Annual Percentage Rate (APR) exceeding 300%.
b)
A 30-year fixed-rate mortgage from a major bank.
c)
A secured auto loan from a credit union.
d)
A zero-interest store credit card for the first six months.
76.
A Title Loan is considered predatory because it typically requires the borrower to:
a)
Hand over the title to their vehicle as collateral, risking immediate loss of the car upon default.
b)
Provide proof of high income before approval.
c)
Use the equity in their home as collateral.
d)
Pay off the entire loan amount in one single installment payment.
77.
Budgeting software and apps typically allow you to perform which essential financial function?
a)
Track all income and categorize all expenses across multiple accounts in one place.
b)
Automatically calculate your annual tax refund without inputting any data.
c)
Buy and sell stocks on the New York Stock Exchange.
d)
Apply for an emergency loan with a fixed, low interest rate.
78.
A key benefit of using budgeting software is that it helps the user to:
a)
Identify non-essential spending habits that can be reduced to meet savings goals.
b)
Earn more interest on their savings account.
c)
Generate a perfect credit score in a short amount of time.
d)
Pay all their bills automatically without ever having to log in to the app.
79.
The essential first step when creating a budget is to:
a)
Determine the total amount of income received over a defined period.
b)
Allocate a fixed percentage of income to savings.
c)
Transfer all debt to a new, low-interest credit card.
d)
Cut out all non-essential spending immediately.
80.
After determining your total income, the next logical step in creating a budget is to:
a)
Calculate and track all fixed and variable essential monthly expenses.
b)
Set aside money for entertainment and dining out.
c)
Apply for a new credit card to cover any shortfalls.
d)
Start a new investment account for retirement.
81.
A major reason the process of receiving an inheritance can take a long time is due to the legal necessity of:
a)
The required legal process of probate, which verifies the will and settles all debts and taxes of the deceased.
b)
The heir having to personally sign all the legal documents at a bank.
c)
The estate being required to remain a tax-exempt entity for several years.
d)
The heir having to prove their financial need to the court.
82.
Which type of asset can generally bypass the probate process and be received by an heir much faster?
a)
Assets that have a designated beneficiary, such as a 401(k) or life insurance policy.
b)
Real estate owned solely by the deceased.
c)
Personal collections, such as artwork or jewelry.
d)
All bank accounts held in the deceased's name.
83.
The primary purpose of vacation leave (Paid Time Off or PTO) is to:
a)
Provide compensation for time away from work for rest, relaxation, and personal pursuits.
b)
Cover short-term absences due to illness or injury.
c)
Allow employees to work from home when the office is closed.
d)
Pay for the employee's travel expenses for family trips.
84.
A key financial benefit of vacation leave as an employee benefit is that it is:
a)
A form of compensation that allows an employee to maintain their income while not working.
b)
An untaxed benefit that is separate from normal income.
c)
A guaranteed bonus payment at the end of the year.
d)
A mandatory requirement for all employers in every state.
85.
Sick leave is a type of paid leave that is specifically intended to cover time off due to:
a)
The employee's illness, injury, or medical appointments.
b)
A planned two-week vacation to a foreign country.
c)
Personal, non-health-related errands or appointments.
d)
A corporate mandated closure due to inclement weather.
86.
In contrast to vacation leave, which is often 'use-it-or-lose-it' or paid out, sick leave is sometimes limited because:
a)
Employers may want to discourage employees from pretending to be sick.
b)
The company prefers employees to use sick leave for vacation.
c)
Sick leave payments are not tax-deductible for the employer.
d)
It is illegal to accumulate sick leave year after year.
87.
If you get a call from a creditor/bank who says you have been the victim of fraud, the first thing you should do is:
a)
Hang up and call the number on the back of your official card or a trusted number from the company's website to confirm the call's legitimacy.
b)
Provide them with your Social Security number and bank password to verify your identity.
c)
Immediately call the police to report the crime.
d)
Accept the phone call and ask them to immediately transfer the fraudulent funds to a new account.
88.
After verifying that your account has indeed been compromised, the most immediate action to limit financial loss is to:
a)
Notify the financial institution and instruct them to freeze or close the compromised account immediately.
b)
Wait for the company to mail you a new card.
c)
Post details of the fraud on social media to warn others.
d)
Purchase an identity theft protection service.
89.
Shopping around before buying something is important because comparing prices and product details helps the consumer to:
a)
Maximize the value received for their money by finding the best quality and lowest price.
b)
Avoid paying sales tax on their purchase.
c)
Determine if they qualify for a loan to finance the purchase.
d)
Increase their credit card limit automatically.
90.
Comparing the prices of goods and services is part of effective financial management, as it directly impacts a consumer's:
a)
Ability to stick to a budget and achieve savings goals.
b)
Future tax deductions.
c)
Investment portfolio diversification.
d)
Eligibility for an adjustable-rate mortgage.
91.
For a standard credit card purchase, you typically do not end up paying interest on the transaction if you:
a)
Pay the entire Statement Balance in full by the due date.
b)
Only pay the minimum payment due on the monthly statement.
c)
Transfer the purchase to another credit card immediately.
d)
Only use the credit card for emergency expenses.
92.
Which type of credit card transaction usually has no grace period and begins accruing interest immediately?
a)
A cash advance withdrawn from an ATM using the credit card.
b)
A purchase of goods from a retail store.
c)
A large online purchase made with the credit card.
d)
A balance transfer from one credit card to another.
Reset
